ZIMBABWE’S economic challenges, largely stemming from policy inconsistency and bad governance, have taken a toll on the country’s bourse, latest statistics show.
According to the Reserve Bank of Zimbabwe (RBZ)’s October Monthly Economic Review, the mainstream industrial index of Zimbabwe Stock Exchange (ZSE) registered an 8,9% decline from 195,25 points in September 2014, to 177,88 points in October 2014.
On a year-to-date basis, the industrial index declined by 15,2% while the mining index also fell by 24,13% in September 2014 to close the month under review at 70,38 points.
“These sentiments were largely underpinned by the prevailing unfavourable economic conditions, coupled with the persistent liquidity crisis,” reads part of the report.
The volume of shares traded on the ZSE declined by 39,86%, from 207,80 million shares in September 2014, to 24,97 million shares in October 2014. On an annual basis, the volumes of shares recorded a 79,3% decline against the back ground of bearish sentiments, which continued to dominate the market, the industrial and mining indices of the declined.
The RBZ said month-on-month market turnover declined by 17,03% from US$34,06 million in September 2014, to US$28,26 million in October 2014.
“On a year-on-year basis, market turnover also declined by 36,6%. Similarly, market capitalisation closed the month of October 2014 at US$4 664,8 million (US$4,7bn), down from US$5 140,2 million (US$5,1bn) in September 2014. Reflecting subdued economic activity, market capitalisation lost US$742,62 million to US$4664,8 million (US$4,7bn) in October 2014, from US$5 407,4 million (US$5,4bn) in October 2013.”